ANNUAL REPORT

STATUTORY SUPPLEMENT AND AUDITED ACCOUNTS

FOR THE YEAR ENDED 31 st MARCH 2012

The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester

Annual Report Statutory Supplement and Audited Accounts 2011/12

Contents 1.1.1. Aims and Objectives ...... 3 2.2.2. Chapter Reports ...... 4 2.1 The Dean ...... 4 2.2 Receiver General ...... 5 2.3 Education and Spirituality ...... 6 2.4 Worship ...... 7 3.3.3. Legal and administrative information ...... 9 3.1 Legal name of the Cathedral ...... 9 3.2 Chapter Office ...... 9 3.3 Chapter ...... 9 3.4 Officers of the Foundation ...... 9 3.5 Council ...... 9 3.6 College of Canons ...... 10 3.7 Other key appointments ...... 11 3.8 Finance and Investment Advisory Committee ...... 11 3.9 Fabric Advisory Committee ...... 11 3.10 Winchester Cathedral Enterprises Ltd ...... 11 3.11 Auditors ...... 12 3.12 Bankers and other professional advisers ...... 12 3.13 Volunteer Section Heads ...... 12 4.4.4. Structure, governance and management ...... 13 4.1 Governing Statute ...... 13 4.2 Relationship with the Diocese of Winchester ...... 13 4.3 Organisational structure – the corporate body ...... 13 4.4 Organisational structure – other key committees and groups ...... 14 4.5 Other organisations associated with the work of the Cathedral ...... 14 4.6 Chapter appointments and training ...... 15 4.7 Chapter’s financial responsibilities ...... 15 4.8 Clergy and senior staff changes ...... 15 4.9 Investment powers...... 15 4.10 Public Benefit ...... 15 4.11 Risk...... 15 5.5.5. Financial Review ...... 16 5.1 Reserves Policy ...... 16 5.2 Investment Policy ...... 16 5.3 Investment performance ...... 16 5.4 Cathedral maintenance plan ...... 18 5.5 Five-year trends ...... 18 5.6 Commentary on the 2011/12 results ...... 18 6.6.6. Plans for future periods ...... 20 7.7.7. Audited Accounts ...... 21

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111 Aims and ObjeObjecccctitititivevevevessss

Vision Our Vision is to discover and live out the beauty of holiness.

Mission Winchester Cathedral, dedicated to the Holy Trinity, seeks in its life to reflect the dynamic love of God revealed in Christ, through being both a servant of others in their journey of faith, and of the world in its search for meaning and inspiration, reconciliation and wholeness.

Purpose To be a community of worship, witness and welcome with Benedictine priorities.

To witness beyond the life of the Cathedral to the universal identity of the Church.

To be a sign of the Kingdom to which God is calling through commitment to justice, the integrity of creation and healing of individuals and communities.

To release and enable within a caring, learning environment, the gifts of all members of the Cathedral community (lay and ordained, staff, volunteers and members of the worshipping community).

To work for collaboration, co-operation and effective communication at all levels of Cathedral life and beyond.

To conserve and develop the beauty of the buildings, contents and estates within our care.

To thrive and not just survive.

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222 CCChapterChapter Reports

2.12.12.1 The Dean

Winchester Cathedral has several identities: it is a building, it is legally a body corporate, it is a ripple of communities that flow through both Church and society. In all of its variety of forms it seeks to make a difference by calling attention to the beauty of holiness in the life, example and wounded glory of Jesus of Nazareth and the holiness of beauty in the world around us exemplified in the Cathedral itself.

When Jesus taught of the Kingdom of God he was ahead of current converts to the organic movement. His parables were very often about seed, soil quality, rain and sunshine, growth and harvest. ‘Listen! A farmer went out to sow his seed...’ (Mark 4:3); ‘Unless a grain of wheat falls into the earth and dies...’ (John 12:24). Jesus was aware of how the organic nature of things related not only to agriculture and food production, but also to humans in community under God. The world of nature, which seems so constant, is actually growing, flowering and dying, renewing itself and adjusting to environmental threats. That organic nature of things transfers to the human community and is certainly the hallmark of Cathedral life. Anything living is constantly changing and renewing itself and that is a fact we deny at our peril.

The building which is Winchester Cathedral needs constant care and attention. Our team of stonemasons under the watchful eye of the Cathedral Architect is constantly renewing decaying stonework, nursing tired lead and securing the roof from water penetration. The building is constantly interacting with its environments both externally and internally, and only careful monitoring and intervention can enable it to continue to signal stability and continuity in a world ever more conscious of the flow of events. Of course, the building itself has known enormous changes in its history as the demands of its worship have changed. That has not stopped; in October 2011 the Cathedral hosted a Seminar to look at the needs of the current worshipping community and what that might mean for the reordering of the Nave.

As to its legal identity, the Cathedral ‘under seal’ comprises the Chapter, the Cathedral Council, and the College of Canons. Those three groups immediately give expression to something dynamic; that is, to relationships within and between them. There are dynamics which are constantly changing as people change and new challenges emerge. Jean Ritchie QC assumed Chairmanship of the Council at the beginning of the year, changes of membership included the retirement of the Bishop of Winchester and then appointment of a successor, The Rt Revd Timothy Dakin. The College of Canons is in constant flux. During the year we welcomed a new Canon Theologian, The Revd Dr Judith Maltby, Chaplain of Corpus Christi College, Oxford. We also adopted two further Ecumenical Canons as that new possibility began to emerge.

The ‘ripple of communities’ that is generated from the Cathedral is a complex mix of employees, volunteers and regular worshippers. In a work-force of over 100 staff (full and part-time combined), over 600 volunteers and several core congregations, the change is constant. There is a continuous process of ‘taking leave’, of preparing induction and renewing the life and work of the Cathedral. New volunteers have to be recruited to replace those who retire or leave, employees have to adapt to new opportunities and restructuring. One annual miracle at which I always marvel is the renewal of the choral life of the Cathedral. We lose one generation of our young choristers and all their excellence worked up over several years, and that has to be regenerated

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once again. It does not just happen; it is a constant demand on musicians, choir school, parents and the young people themselves.

This Annual Report is an insight into how the Cathedral has renewed itself for another year. It is a witness to constant organic growth. The parable of the sower is always close by. Thank you to all who comprise the Cathedral and its ripple of communities for their constant re-presenting of the beauty of holiness. I hope through this report you can capture something of the pain and joy involved in that miracle.

The Very Revd James Atwell, Dean of Winchester

1.21.21.2 The Receiver General

We have faced a challenging but exciting and productive year. Challenging in that, like most businesses and individuals in our country, we have not been immune from the effects of a negative economic environment. Productive, however, in that we have met and improved on our financial targets and have made significant progress in meeting the goals which we have set ourselves in our long-term strategic planning.

I reported last year that we had been able to set a balanced budget for the year 2011/12. I am pleased to report that not only have we achieved this but we have returned a surplus of 25k which has allowed us to put something back into reserves for leaner times, to cover our basic running costs.

A major contribution to our positive financial performance was made by our trading company, Winchester Cathedral Enterprises Limited (WCEL), which reports a 53% net trading increase on last year, creating a record surplus of £387k. A major contribution was made by our Christmas Market which achieved its most successful trading results ever, helped by more favourable weather than last year and the success of marketing billboards prominently displayed at Waterloo Station and at Salisbury, Southampton and Portsmouth. We have also been able to provide support to 28 local charities as part of our local mission aspirations. It is pleasing to see that our Market is now receiving major national and European recognition, with our beautiful Cathedral playing such an important role in bringing the joy of Christmas to so many.

We welcomed Rupert Ellwood, Head of Operations from Waitrose, as a new member of our WCEL board. He joins Stan Kaufman, former Chief Executive of Alders Department Store group, and our Chairman Jonathan Durrant, as non-executive directors who strengthen our trading company board and add great value with their in-depth experience.

We have continued to work throughout the year on our rebranding initiative. You will all have noticed our new signage throughout the Cathedral and the Visitors’ centre. We have also started to design bespoke merchandise, with newly sourced ranges of food, chocolate, water and teas.

Nick Cox, our new Cathedral Architect, was appointed in the autumn and he has already added great strength to our planned maintenance and conservation programme. He is currently working on our Quinquennial and Conservation Management Plan. Our thanks also go to Stephen Chatfield

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who is continuing to provide pro bono project management expertise, courtesy of Land Securities plc.

I am pleased to report that the plans for the desperately needed refurbishment of our existing Education Centre and the single storey timber framed extension have now been completed and have received full planning and CFCE permissions. Our thanks go to Hampshire County Council for their input and support for this project.

A major initiative was set in motion in November when we submitted our Heritage Lottery Fund bid. Our bid team had been working intensively for the past two years in assembling all of the detail required for a major HLF bid for national funding. Conservation is always high on our agenda and with a leaky Quire roof; ‘heritage at risk’ was a key topic which we put before the HLF trustees and visitors, when they visited us in February. Another major element was our goal to transform the South Transept by relocating the magnificent 12 th Century Bible, improving access and providing a new and fresh insight into our historic past through the “Kings and Scribes—The Birth of a Nation” project. The momentous news of our first round pass is known to us at the time of my writing this report, so it is now full steam ahead to apply for Stage Two early next year.

Like many generations that have gone before us, we are simply guardians and custodians of our magnificent heritage. It is our responsibility to pass on this endowment in rugged good health to future generations. That we continue to move forward, laying down positive foundations for our Cathedral to thrive, is a tribute to the many, varied and valuable contributions made by all members of our Cathedral team and community. My thanks go to you all.

Canon Annabelle Boyes, Receiver General and Canon Treasurer

2.32.32.3 Education and Spirituality

2011 was undoubtedly the Year of the Bible, prompted by the 400 th anniversary of the publication of the King James Version. The resulting series of events was the culmination of two years of planning.

One of the least obvious features of the celebration was the restoration of our early 18 th century limewood swags. Originally it was thought that these swags came from the century of the Bible, but careful historical research placed them 90 years later. The restoration was funded by the World Monuments Fund and a private donor and was led by David Esterly, the foremost carver in the Gibbonesque style, based in the state of New York. The result now hangs, newly mounted and illuminated, in the south transept.

The exhibition called Reading the Book of Books, Then and Now: 1611-2011 was officially opened by PD James, who had herself been baptized in the Cathedral. It was curated by Professor Michael Wheeler and organized by Jo Bartholomew. Michael’s conception of constructing different rooms to represent different periods of history, with an emphasis on the contribution of local figures such as Bishop Lancelot Andrewes and Florence Nightingale, created a truly memorable and interactive display, filled with sound but original scholarship. One legacy is a scarily realistic monastic scribe which started life as a shop mannequin, who now haunts the Education Centre! Annual Report Statutory Supplement and Audited Accounts - Page 6

The series of lectures gathered speakers of international repute to explore the King James Bible’s impact on culture – in art, music, literature and language – and took the opportunity to reassess the cultural contribution of the Winchester Bible. Though he said it was like being summoned to the Vatican to say something new about the Sistine Chapel, Dr Christopher de Hamel from Corpus College, Cambridge offered many fresh insights into our most priceless treasure. This series was followed by a major conference at the University looking at biblical authority in the (post-) modern age.

The new banners celebrating the Winchester Bible were unveiled last Easter and proved remarkably popular. They are digital images of the illustrations and text printed onto chiffon silk, designed by Sophie Hacker and Mark Arn. The Venerable Chapel altar and new furniture by Rachel Schwalm, Luke Hughes and Sophie Hacker was also consecrated at Easter, in one of the last acts of Bishop Michael’s ministry at the Cathedral.

Apart from these obvious signs of work, behind the scenes HRO secured a substantial grant for the conservation of our medieval Cathedral rolls from the National Manuscripts Conservation Trust. Over 50 accounts and court rolls were conserved by the end of March, dating from 1243 to 1540. The Cathedral’s Guild of Voluntary Guides has now set itself a year of fundraising, so that even more can be achieved.

From January to March I had the privilege of a sabbatical, with a month in Berlin, two weeks in Alton Abbey and nearly a week in Manhattan, interspersed with periods of biblical study. While this was delightful for me, it was also salutary to come back to everything working well without my interference! This was due to the experience and diligence of my colleagues in the department, to the generous cover of fellow members of Chapter and to Canon Brian Rees, who undertook most of my immediate responsibilities with good - actually ‘wicked’, people said - humour!

The only thing that didn’t happen in 2011 as originally planned was Winchester: Chronicles of Light , but much progress was made with it, including the release of the promotional video now on the Cathedral website. It is good to look forward to this now, after the festivities of the Queen’s Diamond Jubilee and the Olympics, as the nights draw in.

Canon Dr Roland Riem, Chancellor & Pastor

2.42.42.4 Worship

One of the delights at Winchester Cathedral is to be part of a family which is on the move. Realizing that we shall never fully experience a period of complete satisfaction, our building, worship and pastoral care, must always be able to meet present needs and respond, by holding on to things which matters, and yet being transformed into a useful and appropriate instrument of God’s love. In worship, we are more able to adapt to particular needs, and are becoming increasingly a centre both of excellence and a place where people feel more at ease with God. Along with other such places, we have witnessed significant improvements in numbers and participation.

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Since the announcement of the arrival of our next Bishop, a joint planning group from the Cathedral and Diocese has been concentrating of what will be the highlight of 2012, his Inauguration and Enthronement in April. A truly international celebration, with visitors who reflect his ministry around the world as General Secretary of the Church Missionary Society, it will contain both the dignity and solemnity expected, and a sense of warmth and inclusiveness, as we join with Bishop Tim to welcome him to his ministry as our Father in God and look forward to the changes emerging and focus on Jesus Christ, the answer to all our restlessness.

Throughout the remainder of the year, we will be playing our part in celebrating the 60 th anniversary of the reign of our Queen. HRH The Earl of Wessex will attend a county service as, in May, a Cathedral packed with many representatives of all walks of society, and Jubilee volunteers themselves, will take part in the main element of the Cathedral’s celebrations.

These are two of the many specially arranged moments of worship. Our deepening friendship with Winchester College was evidenced by a splendid Eucharist on Ascension Day in the Cathedral sung jointly by the Cathedral and College Chapel Choirs, and along with the finest music, we encourage families to be present at simple, friendly and enjoyable moments, which are relaxed and include everyone. Being adaptable and able to shift emphasis is vital, as is careful and thorough preparation, on all occasions. Often the most straightforward, requires the most work.

Such efforts are demanding and many people make valuable contributions. Along with the musicians, virgers, sidesmen and concert stewards, flower arrangers and bell ringers, all work hard to make sure what is needed is in place for people at the vital moment, so that they can feel welcomed and relaxed. Both Emma Law and Sue Armstrong work tirelessly in meeting people, working alongside others, planning and preparing. We enormously appreciate their utter dedication.

But this is not an insular organization. Our good relationship with parishes, both from near and far, many enquirers, all with their demands, is essential. Singing elsewhere, creating CDs, working hard at the Outreach Programme (even although now without Government funding), all add to the busyness of lives, and contribute to the openness shared, not always available to more inward looking groups.

If we can maintain a sense of momentum, thrill and belief in ourselves, it is far more likely that others will be more active in their interest, their questioning and eventual commitment.

Thank you to everyone who, in their different ways, make such things possible.

Canon Michael St.John-Channell, Precentor and Sacrist

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333 LLLegalLegal and administrative information

3.13.13.1 Legal name of the Cathedral The legal name of the Cathedral is: The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester Name commonly used: Winchester Cathedral

3.23.23.2 Chapter Office The Cathedral Office 9 The Close Winchester Hampshire SO23 9LS

Telephone: 01962 857200 E-mail: [email protected] Website: www.winchester-cathedral.org.uk

3.33.33.3 Chapter Members of Chapter during the year to 31 st March 2012 were as follows:

Dean: The Very Revd James Atwell Canon Chancellor & Pastor: The Revd Canon Dr Roland Riem Canon Precentor & Sacrist: The Revd Canon Michael St-John Channell Receiver General & Canon Treasurer Mrs Annabelle Boyes Lay Canon Prof the Rt Hon Lord Plant of Highfield Lay Canon Dr Helen Harvey

3.43.43.4 Officers of the Foundation High Steward: The Rt Hon Lord Ashburton Counsellor: His Honour Judge Michael Brodrick

3.53.53.5 Council

Members of the Cathedral Council during the year to 31 st March 2012 were as follows: Miss Jean Ritchie QC (Chairman) (Bishop’s appointment) The Very Revd James Atwell (ex officio) Mr Michael Honeysett (elected by Cathedral community) Mr Alan Lovell (Bishop’s appointment) The Revd Dr Howard Mellor (Bishop’s appointment) Mrs Annabelle Boyes (Chapter appointment) The Revd Canon Dr Roland Riem (Chapter appointment) The Revd Canon Ian Tomlinson (appointed by College of Canons) The Revd Canon Peter Doores (appointed by College of Canons) Lady Louisa Portal (Bishop’s appointment) The Revd Ann Keating (Bishop’s appointment) Surgeon Vice Admiral Anthony Revell (elected by Cathedral community) Visitor: The Rt Revd Michael Scott-Joynt, Lord Bishop of Winchester (until May 2011)

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3.63.63.6 College of Canons

Visitor The Bishop of Winchester, The Rt Revd Michael Scott-Joynt (until May 2011) The Bishop of Winchester, The Rt Revd Timothy Dakin (from December 2011)

The Chapter of Winchester The Dean of Winchester , The Very Revd James Atwell Canon Chancellor, The Revd Canon Dr Roly Riem Canon Precentor, The Revd Canon Michael St.John-Channell The Lord Plant of Highfield Mrs Annabelle Boyes Dr Helen Harvey

Bishop’s Staff The Bishop of Basingstoke, The Rt Revd Peter Hancock The Bishop of Southampton, The Rt Revd Jonathan Frost The Dean of Guernsey, The Very Revd Paul Mellor The Dean of Jersey, The Very Revd Bob Key The Archdeacon of Winchester, The Venerable Michael Harley The Archdeacon of Bournemouth, The Venerable Dr Peter Rouch

Canon Theologian The Revd Canon Dr Judith Maltby (2011)

Honorary Canons The Revd Canon Martin Coppen (2004) The Revd Canon Ian Tomlinson (2004) The Revd Canon Clive Hawkins (2005) The Revd Canon Kenneth Batt 2007) The Revd Canon Jo Stoker (2008) The Revd Canon Simon Baker (2008) The Revd Canon Peter Doores (2009) The Revd Canon John Harkin (2009) The Revd Canon Gary Philbrick (2009) The Revd Canon Jackie Browning (2009) The Revd Canon Jill Bentall (2011) The Revd Canon Geoff Houghton (2011) The Revd Canon David Snuggs (2011) The Revd Canon Dr Brian Rees (2011) The Revd Canon Norman Boakes (2011) The Revd Canon Andrew Sharp (2011) The Revd Canon Graham Archer (2011)

Ecumenical Canons The Abbot of Fleury (2011) The Revd Canon Paul Townsend (2011) The Revd Canon Dr Howard Mellor (2011) Annual Report Statutory Supplement and Audited Accounts - Page 10

3.73.73.7 Other key appointments

Receiver General Mrs Annabelle Boyes Cdir FIoD FLCM

Cathedral Architect Mr Nick Cox MA (Cantab) Dip Arch RIBA AABC (from Sept 2011) Nick Cox Architects 77 Heyford Park Upper Heyford OX25 5HD

Archaeologist Dr John Crook MA FSA DPhil 52 Canon Street Winchester SO23 9JW

Director of Music Mr Andrew Lumsden MA FRCO

3.83.83.8 Finance and Investment Advisory Committee

Sir James Butler (Chairman) The Rt Hon Lord Ashburton The Very Revd James Atwell – The Dean (Chapter) Mr Clive Fenn-Smith Mr Nigel Atkinson, Vice Lord Lieutenant of Hampshire Mrs Annabelle Boyes - Receiver General ( Chapter) Mr John Pringle The Revd Canon Michael St John-Channell - Canon Precentor (Chapter) The Revd Canon Dr Roland Riem – Canon Chancellor (Chapter) Mr Jeremy Bowden - Head of Finance (in attendance)

3.93.93.9 Fabric Advisory Committee

General Sir Hugh Beach GBE KCB MC (Chairman) The Revd Canon Mark Bonney Mr Christopher Gordon Mr Michael Morris Mr John Spokes QC Professor Barbara Yorke Ms Zuleika Dobson Professor Martin Biddle (from May 2011) The Very Revd James Atwell - The Dean (in attendance) Mr Carlton Bath (in attendance) Mr Nick Cox (in attendance) (from September 2011) Dr John Crook (in attendance) Mrs Annabelle Boyes – Receiver General (Secretary) Mrs Sue Hancock (Minute secretary)

3.103.103.10 Winchester Cathedral Enterprises Ltd

Mr J H Durrant (Director and Chairman) Mrs A Boyes (Director) The Rev d Canon Dr R Riem (Director) Mr S Kaufman (Director) Mr R J Ellwood (Director from February 2012) Mr J J Bowden (Company Secretary)

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3.113.113.11 Auditors

Grant Thornton UK LLP 1 Dorset Street Southampton SO15 2DP

3.13.13.123.1 222 Bankers and other professional advisers

Bankers National Westminster Bank plc High Street Winchester SO23 9AW

Clerk at Law Mr Julian Hartwell LLB Martyrwell, Cheriton Alresford, Nr Winchester SO24 O2A

Occupational Health Adviser Dr S Chapman Swift Medical Services, St Clements Partnership Tanner Street, Winchester SO23 8AP

Property Agents Carter Jonas Staple Chambers, Staple Gardens Winchester SO23 8SR

Quantity Surveyors Davis Langdon Brunswick House Brunswick Place Southampton SO15 2AP

Solicitors Godwins 12 St Thomas Street Winchester SO23 9HF

Stockbrokers & Investment Managers Cazenove Capital Management Ltd 12 Moorgate London EC2R 6DA

Investment Managers CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ

3.13.13.133.1 333 Volunteer Section Heads Mrs Pat Thornhill, S. Transept Co-ordinator Mrs Gillian Allen, Litter Pickers Mrs Stephanie Woodcock, Tower Tour Guides Mrs Andrea Hall, Wardrobe Team Mrs Helen McGarry and Mr Andrew Crowther-Walker, Flower Arrangers Mrs Margaret Braddock, Holy Dusters / Brass Band Mr Ralph Jessop, Guides Mrs Brenda Fletcher, Information Desk Mr Paul Isted, Programme Sellers Mr Arnold Jarman, Lunchtime Recitals Mr Phillip Johnson, Calligraphers Ms Natalie Shaw, Hospitality Team Annual Report Statutory Supplement and Audited Accounts - Page 12

Mr George Medd, Bell Ringers Ms Suzie McHeyzer, Cash Counters Mrs Anne Newsome, South Transept Co-ordinator Mr Paul Wing, Head Sidesman Mr Brian Scott, Welcoming Stewards Mr John Weatherley, Servers Mrs Robin Anderton, Events Stewards Mrs Hilary Dunwoody, Volunteer Co-ordinator Mrs Lin Squires, Parish Co-ordinators Mrs Valerie Woodward, Visitors’ Chaplains Ms Serena Romer-Lee & Mrs Lorna Atwell, Deanery Books

444 Structure, governance and management

4.14.14.1 Governing Statute The Cathedral is governed by the Cathedrals Measure 1999, and the Constitution and Statutes that came into effect on 19 April 2000 as amended on 17 February 2009.

4.24.24.2 Relationship with the Diocese of Winchester The Diocesan Bishop is The Right Reverend Timothy Dakin.

The Cathedral is the formal ‘seat’ of the Bishop of Winchester, and he is the official Visitor. After consultation with the Chapter and subject to any provision in the Statutes, he may officiate in the Cathedral and use it in his work of teaching and mission, for ordinations and synods and for other Diocesan occasions and purposes. The Bishop is a valued friend and advisor to the Cathedral, which in turn seeks to support the Bishop’s work of leading the Diocese in mission and ministry. Chapter members actively participate in the Mission and Ministry of the Diocese, serving on the Bishop's Staff and many Diocesan committees and working groups.

4.34.34.3 Organisational structure ––– the corporate body The members of Chapter, the Council, and the College of Canons form the corporate body of the Cathedral.

The Chapter of the Cathedral The Chapter consists of the Dean, two Residentiary Canons, the Receiver General & Canon Treasurer and two Lay Canons, members recruited for their skills and expertise in specific areas of the Cathedral’s life. Chapter holds the executive role of the corporate body and is responsible for leadership, policy, strategy and vision.

Residentiary members of Chapter are responsible for different portfolios within the Cathedral’s life – mission and social responsibility, pastoral care and spiritual development, education and visits, liturgy and music and patronage. These departments are supported by a range of committees and teams. The Receiver General & Canon Treasurer has overall responsibility for cathedral support services and resources.

The Cathedral Council The Council is an advisory and consultative body, established to support the work of the Chapter and to ensure accountability to the wider community and Diocese. It provides a sounding board and guidance for Chapter as well as offering an informal ‘watchdog’ role to ensure that the Cathedral fulfils its legal responsibilities. It also has a formal role if any amendments to the Cathedral’s Constitution and Statutes should be proposed.

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The College of Canons The College consists of senior clergy and lay members from across the Diocese, appointed by the Bishop, along with a number of ecumenical canons (representatives from other denominations). Its role is to ensure that the Cathedral is open to informed opinions, observations and comment from churches within and beyond the Diocese.

4.44.44.4 OrganiOrganisational sational structure ––– other key committees and groups

The Finance and Investment Advisory Committee This committee is a sub-committee of Chapter and is responsible for advising Chapter in connection with its responsibilities in the field of financial and investment management.

The Fabric Advisory Committee This committee is responsible for ensuring that any work to the fabric of the Cathedral is done with proper regard to due and legal process. It includes the Cathedral Architect, the consultant Archaeologist, and other experts in the conservation and repair of historic buildings.

The Cathedral Community Membership of the Cathedral Community is open to all those who apply for membership and are aged sixteen years or more, who worship at the Cathedral, or who work for or hold office linked to the Cathedral. The Community meets once a year for an open meeting. It has no statutory powers but allows for open discussion of any issue of interest within the life of the Cathedral. From this body, two members are elected to the Cathedral Council.

4.54.54.5 Other organisations associated with the work of thethe Cathedral

The Friends of Winchester Cathedral The Friends of Winchester Cathedral is an independent network of supporters of the Cathedral. They continue to provide very substantial and welcome support both to the fabric of the Cathedral and to its environment, and also in their generous support of the boys and girls who sing in the cathedral choirs.

Winchester Cathedral Trust Established in 1983, Winchester Cathedral Trust is an independent charity set up to receive money raised from appeals made on the Cathedral’s behalf and to make grants in accordance with the terms of the Trust Deed to support the development of the Cathedral. The Trustees are drawn from across the region.

Winchester Cathedral Enterprises Limited This limited company is a wholly-owned subsidiary of Chapter. It undertakes a range of commercial activities within and around the Cathedral and in the Visitors Centre. All taxable profits are covenanted to Chapter and details of its trading activities are summarised within the statement of consolidated financial activities and the notes to the accounts. The Directors (of whom one is a Chapter member) are appointed by the Chapter.

The Friends of the Dean Garnier Garden The Friends of Dean Garnier Garden was established in 1994 to maintain the Garden, the fabric of which remains in the ownership of the Cathedral. The Dean Garnier Garden, formerly the Deanery Rose Garden, is available for the use of the community of Winchester and for all visitors to The Close.

Carl Klein Trust An independent charity, the Carl Klein Trust supports two dwellings dedicated for lay clerks and gives grants for the welfare of lay clerks. Annual Report Statutory Supplement and Audited Accounts - Page 14

4.64.64.6 Chapter appointments and training The Dean is appointed by the Crown. The two Residentiary Canons (Canon Precentor and Canon Chancellor, called Commissioners’ Canons), are appointed by the Bishop with the agreement of the Dean in consultation with the Chapter. The non-residentiary members of Chapter are appointed by the Bishop with the agreement of the Dean after consultation with the Chapter.

New members of Chapter are provided with key documents such as the Constitution & Statutes and links to the Cathedrals Measure 1999. Informal discussions are used to brief them on their role and to help them understand the different aspects of the Cathedral’s work. Where possible external training courses provided by the Association of English Cathedrals are used.

4.74.74.7 ChapterChapter’s ’s finanfinancialcial responsibresponsibilitiesilities Chapter is responsible under requirements laid down by the Church Commissioners under the powers given to them by Section 27 of the Cathedrals Measure 1999 for • preparing and publishing an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the Cathedral and its connected entities • stating that they have complied in all material respects with the Accounting and Reporting Regulations for English Anglican Cathedrals prepared by the Cathedral Administrators and Finance Association (CAFA) specified by the Church Commissioners or describing which recommendations have not been complied with and giving reasons for the non compliance • selecting suitable accounting policies and then applying them consistently • making judgements and estimates that are reasonable and prudent • keeping proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time, and • safeguarding the assets of the Cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities.

4.84.84.8 Clergy and senior staff changes There were no major changes during the year.

4.94.94.9 Investment powers Under the Cathedrals Measure 1999 the Chapter may invest the Cathedral's funds in any of the following: Land; Funds administered for the Central Board of Finance of the Church of England by CCLA Investment Management Ltd; investments in which trustees may invest under the general power of investment in the Trustee Act 2000; the improvement or development of property belonging to the Cathedral, except that endowment funds may not be used to improve or develop the Cathedral itself and its ancillary buildings.

4.104.104.10 Public Benefit Although it is not a reporting requirement of the Church Commissioners, nevertheless Chapter confirm that they have complied with section 4 of the Charities Act 2006 to have regard to the public benefit guidance published by the Charity Commission in determining the activities of the Cathedral. The Cathedral not only serves the community daily in its religious and charitable work, but is an active resource of national importance in the promotion of religion, music, education, history and architecture.

4.114.114.11 Risk A corporate risk register has been completed and accepted by Chapter. This identifies and measures the possible impact of perceived risks and sets out the actions taken to manage and mitigate them. Progress will be reviewed every year by Chapter. A risk register for each individual department was also been completed during the year.

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555 Financial Review

5.15.15.1 Reserves Policy Reserves are needed both to maintain the level of the Cathedral’s current activities and to enable the completion of long-term projects.

Maintaining unrestricted reserves protects the Cathedral against a sudden deterioration in its financial results (e.g. a significant drop in visitor income). It also provides a buffer in the event of long-term planning or restructuring.

Chapter’s aim is to build up reserves to at least 6 months of ordinary activity to afford increased protection to the Cathedral’s operations and increased flexibility in their availability and use.

Where specific future funding needs are identified, Chapter has the discretion to set aside free funds for designated purposes, those funds being declared as Designated Funds.

5.25.25.2 Investment Policy The Dean & Chapter aim to keep a balanced portfolio of investments that is risk averse and appropriate to the purposes of the funds that are represented by them.

Investments in property are to be either capable of efficient local management or in the form of managed property funds. Performance is measured against income yield on the CBF Property Fund, the property fund managed by CCLA Investment Management Ltd on behalf of the Central Board of Finance of the Church of England.

A medium to low risk profile is taken on equities and performance is measured against a composite benchmark index constructed by Cazenoves based on the agreed proportion of the component elements of the portfolio. The current benchmark index was agreed in September 2011.

The investment objectives given to our principal fund managers, Cazenoves, are to protect the capital value of the funds, to provide an increasing income and to maximise the overall growth of the funds. This should be achieved by investing in UK government and other fixed interest securities to provide a high and secure level of income and through UK equities to protect the capital value. Any overseas investment should be invested via appropriate pooled funds.

Chapter, in its stewardship of charitable funds, aims to achieve appropriate levels of investment return within an ethical framework. Its investments are chosen according to a policy of Socially Responsible Investment (SRI). The Chapter’s SRI policy is based in turn on the social, environmental and ethical policies that are adopted by the Cathedral’s principal Investment Managers, Cazenove, and for the smaller proportion of its portfolio, the policies operated by CCLA. Responsibility for the management of this policy rests with the Chapter, but authority to conduct stock transactions on a day-today basis under this policy is delegated to the Cathedral’s Investment Managers.

5.35.35.3 Investment performance

Property Investments The Dean and Chapter own property to house clergy and staff, and to use for offices. Other property is held for investment purposes and is rented out on a commercial basis where possible to generate funds for the day-to-day operation of the ministry of the Cathedral. Properties were revalued at market value in 2009/10.

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£’000 Rental income 591 Professional services (9) Repairs (1 9) Net income 563

Yield on investment properties

Capital value investment property (£’000s) 13,622 Net income yield 4.1% CBF Property Fund income yield 6.8 %

The annual net income yield will vary year by year depending on the amount of capital works done in the year. Our relatively low yield reflects the fact that capital values in the Close are particularly high and also that for historical reasons, some properties do not generate market rents. It is however Chapter policy through the Close Plan to address some of these issues. As a result of this and the policy to increase property and rental opportunities, rents have increased significantly over the last three years – from £405.3k in 2009/10 to £523.8k 2010/11 and £591.1k in 2011/12.

Other investments The performance of the Cathedral’s other investments is shown below:

Equity Fixed Other Total Gross income from other investments funds interest funds £’000 £’000 £’000 £’000

Cazenove funds 213 50 15 278

CCLA 14 - 35 49

22 7 50 50 327

Gains/(losses) on revaluations/disposals (46) Management fees (35)

Total return on other investments 246

Return on other investments £’000

Market value of other investments 6, 528 Return 3.8% Composite index agreed with Cazenove 3.5%

The investments produced a positive total return of 3.8% for the year to 31 st March 2012 compared to the tailored composite benchmark of 3.5%. 2011 was a year that called for defensive investment strategies and as a consequence the Cathedral’s exposure to equities was of benefit. Fixed income investments however considerably lagged behind those gilt market indices that show a preference for corporate debt. This was a satisfactory outcome in a year when financial markets constantly reminded us how quickly sentiment can reverse. The investments have been further diversified and positioned towards income generation and dividend growth despite the weak outlook for the economy.

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At 31 st March 2012 our total investments excluding direct property holdings totalled £6.54m, of which 64% were held in listed equity funds, 14% in fixed interest, 5% in hedge funds, 2% in cash and 15% in other funds.

5.45.45.4 Cathedral maintenance plan A 10 year draft conservation plan has been drawn up covering major projects and conservation works and this is being reviewed and updated. This will be supported by a 10 year general maintenance plan. Financial plans now look ahead in detail for the next 3 years and are updated annually. The above plans create a structure for development of all aspects of the Cathedral and provide the basis for ongoing, long-term stability and growth. In 2012 a quinquennial survey has been commissioned, as well as a conservation management plan and archaeological report.

5.55.55.5 FiveFive- ---yearyear trends Set out below are key financial indicators over the last five years:

2007/08 2008/09 2009/10 2010/11 2011/12 £000 £000 £000 £000 £000 Total income 4,032 3,732 4,129 4,799 4,5 21 WCEL covenant to Chapter 153 206 253 253 387 Other visitor income 402 383 449 501 586 Rental income 430 382 405 524 591 Investment income 341 268 272 326 327 Cathedral repairs/upkeep 741 881 812 1,43 5 916 Other expenditure on mission 1,2 45 1,109 1,296 1,30 4 1,605 General Fund result (before capital gains) 197 (116) (7) 14 25

5.65.65.6 Commentary on the 2011/12 results 2010/11 was described by the Receiver General in last year’s Annual Report as a significant “milestone year” on a journey to implement our strategic plan and to steadily improve the financial health of the Foundation. Looking back at the structural changes that have been put in place over recent years , the results for 2011/12 can give us confidence that the sometimes difficult decisions we had have to take are having a truly positive impact on the state of our finances, and that we are continuing to make robust progress along that journey.

This is all against a background of economic stagnation and uncertainty. The Cathedral is certainly not immune to these external factors, but in a number of areas of activity we have been able to liberate latent potential and dramatically defy expectations. I refer in particular to the outstanding results of the Cathedral’s trading company, which was able to increase the net profit it donates to the Cathedral from £253k in 2010/11 to £387k this year – a bottom line improvement of £134k (53%).

Looking at the consolidated results of the Cathedral, the main indicator on the Statement of Financial Activities (p27) is the General Fund result before capital gains. The General Fund is an unrestricted fund into which the income from our ordinary activities goes and from which we pay for our general running costs. The chart in 5.5 shows steady progress from a loss of £116k in 2008/9 to a surplus of £25k in 2011/12. This shows that we can not only cover our costs on a day to day basis, but can gradually build up general reserves to the six months of ordinary activity that Chapter have set as a reserves policy. General reserves now stand at £1.64m, 5.2 months of ordinary activity, and exist to enable us to continue the Cathedral’s mission in the event of an emergency or a need to make a major investment. In addition to an increase in general reserves,

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Chapter have made specific provision to set aside £50k in a Discretionary Fund to provide future matched funding.

Total income actually decreased in the year by £278k (6%) from £4,799k to £4,521k. This is because the previous year, 2010/11, saw the completion of the Fleury Building, which was grant-aided by the Friends of Winchester Cathedral. They contributed £690k during that financial year, a hugely generous contribution. This was reflected under VoluntaryVoluntary Income, which is therefore seen to drop from £1,396k in 2010/11 to £761k in 2011/12. However, other components in this category saw a rise: congregational collections and giving rose from £76k to £129k. Special services, where collections are given to specific charities saw a particular rise. Income from appeals and fundraising also rose from £130k to £139k. This heading included income from the Lord Lieutenant’s and High Sheriff’s concerts and also the Deanery Booksale, which grossed a record £66k this year. Tax recoverable under Gift Aid also rose this year, despite the ending of transitional relief on 5 th April which reduced the effective recovery rate from 28% to 25%. This was due to an effort to invite more paying visitors to gift-aid their entrance fee. Donations however fell from £296k to £257k. Giving from envelopes and standing orders fell from £120k in 2010/11 to £96k in 2011/12. Awareness of stewardship is an area Chapter wishes to prioritise in the new financial year.

Income from activities generating funds is the heading that has seen most change during the year. Income has increased by £235k to £2,506k (2010/11 £2,271k). This includes an £87k (17.4%) increase in Charges to visitors to £587k (2010/11 £500k). Paying visitor numbers, including invoiced groups, rose 11% from 109,600 to 121,300 during 2011/12. Again, this is a not inconsiderable achievement in a year of recession and is a reflection of the increasingly higher profile of the Cathedral in the public eye. But, as has already been mentioned, it is the increase in the performance of Winchester Cathedral Enterprises Ltd which has been of particular significance. Turnover increased by £149k (8%) from £1,768k (2010/11) to £1,917k in 2011/12. Even greater progress was seen in the growth of net profits, which increased by £134k (53%) from £253k to £387k. During the year, new branding was introduced and a number of own-branded products were developed both for the Gift Shop and the Refectory, including coffee, tea, chocolates and more recently, bottled water. The Christmas Market and Ice Rink were very successful, attracting record numbers attributable to a growing reputation, a first-rate marketing campaign and a spell of excellent weather. We were able greatly to improve the quality and profitability of our in-house chalets. Compared with 2010/11, the Gift Shop increased sales by £31k (7%) to £467k (2010/11 £436k) and net profit by £6k (8%) to £82k (2010/11 £76k). Catering sales increased by £39k (5%) to £899k (2010/11 £860k) and net profit by £16k (31%) to £68k (2010/11 £52k).

Income from property and investments rose by £68k (8%) to £918k (2010/11 £850k). Whereas investment income is fairly static, the rise in property income (rents) can be seen clearly in the five-year trends shown in 5.5 above. It has been one of Chapter’s key objectives to generate more income from our valuable property assets in the Close, and 2011/12 is the first full year of income generated from all the property improvements executed to date. Rents increased by £67k (13%) during the year to £591k (2010/11 £524k). This represents an increase of 55% in four years. Of other sources of income, grant income increased by £37k to £192k (2010/11 £155k) with extra grants from the Church Commissioners grants and the Allchurches Trust (£21k).

Total expenditure amounted to £4,443k (2010/11 £4,767k), down £324k (7%) from the previous year.. The main reason for the fall was the completion of the Fleury Building in 2010/11.. Costs of generating funds was up £57k (3%) compared with 2010/11. Apart from extra costs in the trading

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company owing to increased activity, more was also spent on marketing – more specifically the re-branding which seems to have had such a positive effect on visitors and trading. We have been able to spend an extra 6.0% on MinistryMinistry, which includes services and music, and have increased expenditure on EducatiEducationon and outreach (up £25k to £240k), an increase of 12%. The latter heading includes exhibitions, the highlight being the King James Bible exhibition. It also includes Charitable givinggiving, which increased to £54k from £40k in 2010/11. In general, the Cathedral tries to keep running costs down as much as possible; for example significant costs were saved in staff training by active participation in national and regional training programmes.

Major repairs and restoration included conservation of the stonework of the South Presbytery (£41k), work in the Venerable Chapel (£26k), repairs to the Quire stall carvings (£22k), the final instalment of the Fleury building (£23k), and the extension of the CCTV system (£13k). In addition, fees of £49k were incurred to draw up the application for the successful Heritage Lottery Fund application.

In summarysummary, 2011/12 was a successful year in which the Cathedral has moved significantly forward in its plan to improve its financial position. It has dramatically built up its trading and visitor income and has also greatly increased rental income. This has enabled the Cathedral not only to devote more resources to its mission, but prudently to build up its reserves as a buffer against future uncertainties.

666 Plans for future perperiodsiods

In May 2012, the Cathedral’s application for a Round One Heritage Lottery Fund grant was approved. This is the development phase of a larger project that aims to undertake essential repair and conservation work, transform the visitor experience and radically develop public and volunteer engagement in the work of the Cathedral.

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777 Audited Accounts

AUDITED ACCOUNTS 31st March 2012

The Cathedral Church of the Holy Trinity, St Peter and St Paul, and of St Swithun in Winchester

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Statement of the Chapter's financial responsibilities

The Chapter is responsible under requirements laid down by the Church Commissioners under the powers given them by Section 27 of the Cathedrals Measure 1999 for

• preparing and publishing an annual report and audited accounts which give a true and fair view of the financial activities for each financial year and of the assets, liabilities and funds at the end of each financial year of the Cathedral and its connected entities; • stating that they have complied in all material respects with the regulations on the subject prepared by the CAFA or describing which recommendations have not been complied with and giving reasons for the non compliance; • selecting suitable accounting policies and then applying them consistently; • making judgements and estimates that are reasonable and prudent; • keeping proper accounting records from which the financial position of the Cathedral can be ascertained with reasonable accuracy at any time, and safeguarding the assets of the cathedral and taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Chapter is aware:

• there is no relevant audit information of which the Cathedral's auditors are unaware; and • the Chapter has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The Chapter is responsible for the maintenance and integrity of the Cathedral and financial information included on the Cathedral's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Independent auditor's report to the members of Chapter of Winchester Cathedral

We have audited the financial statements of Winchester Cathedral for the year ended 31 March 2012 which comprise the principal accounting policies, the consolidated statement of financial activities, the consolidated balance sheet, the Cathedral balance sheet, the consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Chapter, as a body, in accordance with the regulations made under Section 27 of the Cathedrals Measure 1999. Our audit work has been undertaken so that we might state to the Chapter those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Cathedral and the Chapter as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Chapter and auditor As explained more fully in the Statement of the Chapter's Responsibilities, the Chapter is responsible for the preparation of the financial statements which give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's website at www.frc.org.uk/apb/scope/private.cfm.

Opinion on financial statements In our opinion the financial statements:

• give a true and fair view of the state of the Cathedral's affairs as at 31 March 2012, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the regulations made under Section 27 of the Cathedrals Measure 1999.

Grant Thornton UK LLP Statutory Auditors – Chartered Accountants Southampton July 2012

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Principal accounting policies

Basis of preparation

The accounts have been prepared in accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals issued in November 2006 by the Cathedrals Administration and Finance Association. They have been prepared under the historical cost convention except that property and investments are included at a valuation.

The principal accounting policies have remained unchanged from the previous period and are set out below.

Basis of consolidation

The consolidated financial statements comprise those of the Cathedral and of its wholly-owned subsidiary company Winchester Cathedral Enterprises Limited. The consolidated financial statements also comprise the results of Winchester Cathedral Box Office Limited, a wholly owned subsidiary of Winchester Cathedral Enterprises Limited.

Funds

The Cathedral's permanent endowment funds are set out in note 15 to the financial statements. They include the Endowment, Music and Staff Pension Fund investments of the former Winchester Cathedral Appeal. Income from the permanent endowment funds is unrestricted.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor and are set out in note 16 to the financial statements. The reserve arising on the revaluation of properties within the Cathedral Close is deemed to be a restricted fund.

Unrestricted funds are funds where no restrictions are placed on the use by the Cathedral as regards either the capital or the income, and include the reserve arising on the revaluation of properties other than in the Cathedral Close.

Income

Dividend income and bank interest are included at the time of receipt at amounts which include recoverable income tax where appropriate. Voluntary income is received by way of general donations, special donations, church collections, Gift Aid donations. Such income is included at the time of receipt at amounts which include recoverable income tax on Gift Aid donations. Other income is included at the time of receipt or, in the case of grants, when the necessary conditions have been met. Legacy income is recognised when it is receivable.

Resources expended

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Chapter to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

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"Costs of generating funds" comprises costs of attracting voluntary income, costs of trading for fund raising purpose, and costs of managing the investment properties.

"Expenditure on mission" comprises costs of the Cathedral's ministry, upkeep of the Cathedral fabric and precincts, and education and outreach.

"Governance" comprises costs of meeting the constitutional and statutory requirements of the Cathedral and its subsidiary companies.

Repairs, maintenance and restoration costs are valued on the basis of work done during the financial year.

Support costs, comprising salaries and office costs, have been allocated to the activity cost categories based on an estimate of the time spent.

Fixed assets

Property valuations have been included in the balance sheet on the following basis:

investment properties – market value
non-investment properties – existing use value

In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral as it is an inalienable and historic building for which no reliable cost information or conventional valuation basis is available.

Depreciation

Depreciation is calculated to write off the cost or valuation less estimated residual value of all tangible fixed assets (other than buildings) by equal annual instalments over their expected useful economic lives. The rates generally applicable are:

Capital equipment 25% Fixtures and fittings 20 -50% Equipment 20% Office Refurbishment 10%

As all of the properties are maintained in a state of repair such that their estimated residual value is not less than their improvement cost or carrying amount, the annual depreciation charge is £Nil.

Investments

Investments are included in the balance sheet at their market values, except for shares in wholly-owned companies which are included at cost. The capital value of the investments funds represents both unrestricted, restricted and endowment funds. The realised and unrealised gains and losses on the investment fund is allocated to the funds in the ratio of their market value at the beginning of the financial year.

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Stocks

Shop and refectory stocks are stated at the lower of cost and net realisable value.

In accordance with the Accounting and Reporting Regulations for English Anglican Cathedrals, no value is attributed in the balance sheet to the Cathedral inventory which comprises items of architectural, archaeological, artistic or historic interest.

Pension schemes

Chapter participates in the Church of England Defined Contributions Scheme, part of the Church Workers’ Pension Scheme. New employees may enrol in this scheme. In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members.

The pension costs represent the amount of the contributions payable to pension schemes in respect of the accounting period.

Heritage Assets

The Cathedral holds a number of heritage assets with historic and artistic value. The nature and scale of the collection belonging to the Chapter of Winchester include: • Medieval manuscripts, including the Winchester Bible the largest and finest of all surviving 12th- century English bibles • The Morley Library a beautiful 17th-century collection of rare books bequeathed by Winchester’s Bishop Morley • Winchester Cathedral Archives • Winchester Cathedral wall monuments • Winchester Cathedral ledger stones and floor monuments • Winchester Cathedral medieval wall paintings • An Antony Gormley sculpture, Sound II • Other artefacts, including the Shaftesbury Bowl, the only surviving example of late Saxon glass in England

The Cathedral’s policy for the acquisition, preservation, management and disposal of heritage assets is described in S13(1) of the Care of Cathedrals Measure 1990.

Valuation of the artefacts is not deemed necessary for the day to day operation of the Cathedral. In addition the quantity of items and the diverse nature of the collection would make valuation prohibitively expensive compared with the additional benefits derived by the Cathedral and users of the accounts. As a result, no value is reported for these assets in the Balance Sheet.

Expenditure which, is required to preserve or prevent further deterioration of individual items, is recognised in the Income and Expenditure Account when it is incurred.

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Consolidated statement of financial activities

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2012 2012 2012 2012 2012 2011 £000 £000 £000 £000 £000 £000 Incoming resources 1 Voluntary income 283 105 373 - 761 1,396 Grants receivable - - 192 - 192 155 Charges and fees arising in the course of mission 113 6 - - 119 126 Income from activities generating funds 2,506 - - - 2,506 2,271 Income from property and investments 918 - - - 918 850 Other incoming resources 1 - 24 - 25 1

Total incoming resources 3,821 111 589 - 4,521 4,799 Cost of generating funds 3,5 1,941 12 - - 1,953 1,896

Net incoming resources available for mission 1,880 99 589 - 2,568 2,903

Expenditure on mission 4 Ministry 793 - 321 - 1,114 1,051 Cathedral and precincts upkeep 693 - 223 - 916 1,435 Education and outreach 198 - 42 - 240 215 Other expenditure on mission 23 49 - - 72 38

1,707 49 586 - 2,342 2,739

Governance costs 6 148 - - - 148 132

Net incoming resources 25 50 3 - 78 32

Other recognised gains Non-investment property ------Investment property ------Investments (5) - (5) (36) (46) 254

(5) - (5) (36) (46) 254 Net movement in funds 20 50 (2) (36) 32 286

Fund balances brought forward 2,254 - 24,946 5,150 32,350 32,065

Fund balances carried forward 2,274 50 24,944 5,114 32,382 32,351

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Consolidated balance sheet

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2012 2012 2012 2012 2012 2011 £000 £000 £000 £000 £000 £000 Fixed assets Investment assets Property 9 86 - 13,536 - 13,622 13,622 Investments 10 512 - 915 5,114 6,541 6,598

598 - 14,451 5,114 20,163 20,220

Non-investment assets Property 11 1,590 - 10,489 - 12,079 12,086 Plant & equipment 12 130 - - - 130 117

1,720 - 10,489 - 12,209 12,203

Total fixed assets 2,318 - 24,940 5,114 32,372 32,423

Current assets Stocks 136 - - - 136 115 Debtors 13 153 - 25 - 178 325 Cash at bank and in hand 224 50 - - 274 75

513 50 25 - 588 515

Current liabilities 14 (557) - (21) - (578) (587)

Net current assets / (liabilities) (44) 50 4 - 10 (72)

Total assets less total liabilities 2,274 50 24,944 5,114 32,382 32,351

Funds General fund 18 1,640 - - - 1,640 1,620 Property revaluation reserve16,18 634 - 23,575 - 24,209 24,222 Music fund 15 - - - 2,373 2,373 2,390 Other funds 15,16,17 - 50 1,369 2,741 4,160 4,119

2,274 50 24,944 5,114 32,382 32,351

The financial statements were approved by the Chapter at their meeting on 24th July 2012 and are signed on their behalf by:

The Very Reverend J Atwell - Dean

Mrs Annabelle Boyes CDir, FIOD - Receiver General & Canon Treasurer

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Balance Sheet - Dean & Chapter only

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds Note 2012 2012 2012 2012 2012 2011 £000 £000 £000 £000 £000 £000

Fixed assets Investment assets Property 9 86 - 13,536 - 13,622 13,622 Investments 10 522 - 915 5,114 6,551 6,608

608 - 14,451 5,114 20,173 20,230

Non-investment assets Property 11 220 - 10,704 - 10,924 10,936 Plant & equipment 12 13 - - - 13 19

233 - 10,704 - 10,937 10,955

Total fixed assets 841 - 25,155 5,114 31,110 31,185

Current assets Debtors 13 644 - 26 - 670 534 Cash at bank and in hand 26 50 - - 76 9

670 50 26 - 746 543

Current liabilities 14 (521) - (21) (542) (446)

Net current assets / (liabilities) 149 50 5 - 204 97

Total assets less current liabilities 990 50 25,160 5,114 31,314 31,282

Funds General fund 18 831 - - - 831 811 Property revaluation reserve16,18 159 - 23,790 - 23,949 23,962 Music fund 15 - - - 2,373 2,373 2,390 Other funds 15,16,17 - 50 1,370 2,741 4,161 4,119

990 50 25,160 5,114 31,314 31,282

The financial statements were approved by the Chapter at their meeting on 24th July 2012 and are signed on their behalf by:

The Very Reverend J Atwell - Dean

Mrs Annabelle Boyes CDir, FIOD - Receiver General & Canon Treasurer

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Consolidated cash flow statement

Note 2012 2012 2011 2011 £000 £000 £000 £000

Net cash outflow from operating activities 19 (492) (680)

Returns on investments Rents received net of costs 563 524 Interest and dividends received 292 286

855 810 Capital expenditure and financial investment Sale proceeds of investments less amounts reinvested 11 (59) Purchases of furniture and equipment (73) (176)

(62) (235)

Cash inflow/(outflow) before management of liquid resources and financing 301 (105)

Management of liquid resources

Net decrease in liquid resources 20 - -

Increase (decrease) in cash 20 301 (105)

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Notes to the financial statements

1 Consolidated Incoming resources

Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2012 2012 2012 2012 2012 2011 £000 £000 £000 £000 £000 £000 Voluntary income Congregational collections and giving 84 - 45 - 129 76 Donations 97 105 55 - 257 296 Income from appeals and fundraising 44 - 95 - 139 130 Tax recoverable under Gift Aid 58 - - - 58 50 Income from Friends and local trusts - - 178 - 178 825 Legacies - - - - - 19

283 105 373 - 761 1,396

Grants receivable Church Commissioners - - 123 - 123 115 Other revenue and capital grants - - 69 - 69 40

- - 192 - 192 155

Charges and fees arising in the course of mission Facility and other fees 113 6 - - 119 126

Income from activities generating funds Charges to visitors 587 - - - 587 500 Gross income of shop, refectory and other trading a ctivities 1,917 - - - 1,917 1,768 Other external charges 2 - - - 2 3 2,506 - - - 2,506 2,271 Income from property and investments Income from investment property 591 - - - 591 524 Income from other investments 327 - - - 327 326

918 - - - 918 850

Other income Other items 1 - 24 - 25 1

Total incoming resources 3,821 111 589 - 4,521 4,799

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2 Income and expenditure from trading subsidiaries

a) Winchester Cathedral Enterprises Limited

Winchester Cathedral Enterprises Limited is a wholly owned subsidiary which is incorporated in the UK, Registered Company No. 2100067. The company operates a retail shop; a refectory; the Cathedral box office; the organisation of functions and events including the Christmas market. A summary of the trading results for the year, which have been consolidated into Chapter accounts, are shown below. Audited accounts have been prepared and filed with the Registrar of Companies.

2012 2011 £000 £000

Turnover 1,917 1,768

Cost of sales (711) (694)

Gross profit 1,206 1,074

Other operating charges (820) (821) Other operating income - –

Operating profit 386 253

Interest receivable 1 -

Profit on ordinary activities before 387 253

Donation to the Chapter of Winchester (387) (253)

Profit for the financial year - -

The Net Assets of Winchester Cathedral Enterprises Limited at 31st March 2012 1,004 1,004

b) Winchester Cathedral Box Office Limited

Winchester Cathedral Box Office Limited is also a wholly owned subsidiary which is incorporated in the UK, Registered Company No. 594563. Until the 31 March 2010 the company operated the Cathedral box office facility for both internal and external events. Since 1 April 2010 the box office function has traded through the legal entity of Winchester Cathedral Enterprises Limited. The company has therefore been dormant since that time. At 31st March 2012 it had net assets of £1 (2010/11 £1).

3 Cost of generating funds Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2012 2012 2012 2012 2012 2011 £000 £000 £000 £000 £000 £000 Costs of facilities for visitors 86 - - - 86 85 Costs of services directly recoverable 42 - - - 42 28 Gross costs of shop, refectory and other trading activities 1,531 - - - 1,531 1,515 General marketing costs 183 - - - 183 102 Costs of appeals and fund raising 36 12 - - 48 65 Investment property costs 28 - - - 28 62 Investment managers fees 35 - - - 35 39

1,941 12 - - 1,953 1,896

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4 Expenditure on mission Unrestricted Designated Restricted Endowment Total Total funds funds funds funds funds funds 2012 2012 2012 2012 2012 2011 Ministry £000 £000 £000 £000 £000 £000 Clergy stipends and working expenses 15 - 122 - 137 128 Clergy housing costs 16 - - - 16 17 Clergy support costs 45 - - - 45 57 Services and music 717 - 199 - 916 849

793 - 321 - 1,114 1,051

Cathedral and precincts upkeep Major repairs and restoration 83 - 189 - 272 799 Maintenance and interior upkeep 278 - 3 - 281 299 Cathedral insurance 85 - - - 85 82 Precincts, security and gardens upkeep 173 - 27 - 200 184 Support costs 74 - 4 - 78 71

693 - 223 - 916 1,435

Education and outreach Educational activities 101 - - - 101 86 Archives and library 85 - - - 85 89 Charitable and other giving 12 - 42 - 54 40

198 - 42 - 240 215 Other expenditure on mission Heritage Lottery Fund Project - 49 - - 49 - Irrecoverable VAT 23 - - - 23 38

23 49 - - 72 38

Total expenditure on mission 1,707 49 586 - 2,342 2,739

5 Support costs Direct Support Total Direct Support Total costs costs costs costs 2012 2012 2012 2011 2011 2011 £000 £000 £000 £000 £000 £000

Costs of generating funds 1,828 125 1,953 1,821 74 1,896 Ministry 889 225 1,114 849 202 1,051 Cathedral and precincts upkeep 737 179 916 1,281 155 1,435 Education and outreach 216 24 240 194 21 215 Other expenditure on mission 72 - 72 38 - 38 Governance costs 148 - 148 132 - 132

3,890 553 4,443 4,315 452 4,767

Annual Report Statutory Supplement and Audited Accounts - Page 33

6 Governance costs 2012 2011 £000 £000 Auditors' remuneration: Audit services 16 16 Accountancy and other services - 14 Taxation advice 7 2 Governance and strategic planning 125 100

148 132

7 Employees Staff costs during the year were as follows: 2012 2011 £000 £000 Salaries and stipends 1,669 1,549 Social security costs 121 120 Other pension costs 95 107

1,885 1,776

The average number of employees on a full time equivalent basis during the year was as follows:

2012 2011 Cathedral staff 16 16 Administration 13 12 Education 2 2 Maintenance 12 11 Shop and refectory 23 22 Visitor services 5 3

71 66

One member of the Chapter, the Receiver General, received remuneration during the year of £70,000 (2011: £64,096). The Dean, the Canon Chancellor and Precentor Stipends are paid by the Church Commissioners.

The remuneration and pension provision of the clerical members of the Chapter are covered in full by a grant from the Church Commissioners in accordance with the scales laid down by the Archbishops’ Council, the Church of England pensions Board and the Church Commissioners.

A total of £6,367 (2011:£8,702) was reimbursed to four members of the Chapter during the year in respect of travelling and other out of pocket expenses.

8 Auditors’ remuneration

The total remuneration receivable by the auditors from the Chapter, Winchester Cathedral Enterprises Limited and Winchester Cathedral Box Office Limited was as follows:

2012 2011 £000 £000

Audit services 16 16 Accountancy and other services - 26 Taxation advice 7 -

23 42

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9 Investment property

Consolidated and Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000 Valuation At 1 April 2011 86 - 13,536 - 13,622 Change in use - - - - - Additions - - - - - Change in market value - - - - -

At 31 March 2012 86 - 13,536 - 13,622

10 10 Investments

Unrestricted Designated Restricted Endowment Total funds funds funds funds funds £000 £000 £000 £000 £000

Investments at market value 1 April 2011 721 - 692 5,071 6,484 Additions 99 - 96 701 896 Proceeds from disposals (102) - (98) (721) (921) Transfers (213) - 205 8 - Net decrease on disposals and revaluations (5) - (5) (36) (46)

Investments at market value 31 March 2012 500 - 890 5,023 6,413

Short term deposits - - 13 - 13 Uninvested Cash 12 - 12 91 115

Market Value Carried Forward (Consolidated) 512 - 915 5,114 6,541

Investments in Group Undertaking at Net Asset Value 10 - - - 10

Investments (Chapter) 522 - 915 5,114 6,551

2012 2011 £000 £000

Equity funds 4,178 4,236 Fixed interest funds 908 511 Hedge funds 358 761 Property funds 221 222 Cash fund 115 101 Other managed funds 748 754 Other liquid resources 13 13 6,541 6,598 Shares in subsidiary companies 10 10

6,551 6,608

The Chapter owns the whole of the issued share capital of Winchester Cathedral Enterprises Limited.

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11 11 Non-investment property

Consolidated Unrestricted Designated Restricted Endowment Total funds funds funds funds funds Valuation £000 £000 £000 £000 £000 At 1 April 2011 1,585 - 10,501 - 12,086 Additions 5 - - - 5 Depreciation - - (12) - (12)

At 31 March 2012 1,590 - 10,489 - 12,079

Chapter Unrestricted Designated Restricted Endowment Total funds funds funds funds funds Valuation £000 £000 £000 £000 £000 At 1 April 2011 220 - 10,716 - 10,936 Additions - - - - - Depreciation - - (12) - (12)

At 31 March 2012 220 - 10,704 - 10,924

Non-investment properties are held and used as follows: Long Freehold leasehold Total At 1 April 2011 £000 £000 £000 For Cathedral administration and workshops 1,294 - 1,294 For Cathedral clergy and staff housing 6,502 220 6,722 For the Deanery 2,200 - 2,200 For the education centre 505 - 505 Leased to Winchester Cathedral Enterprises Limited 215 - 215 Chapter total 10,716 220 10,936 Eliminated on consolidation (215) - (215) For Cathedral trading activities 1,365 - 1,365

Consolidated total 11,866 220 12,086

Long Freehold leasehold Total At 31 March 2012 £000 £000 £000 For Cathedral administration and workshops 1,282 - 1,282 For Cathedral clergy and staff housing 6,502 220 6,722 For the Deanery 2,200 - 2,200 For the education centre 505 - 505 Leased to Winchester Cathedral Enterprises Limited 215 - 215

Chapter total 10,704 220 10,924 Eliminated on consolidation (215) - (215) For Cathedral trading activities 1,370 - 1,370

Consolidated total 11,859 220 12,079

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12 12 Cathedral plant and equipment

Consolidated Chapter £000 £000 Cost At 1 April 2011 592 195 Additions 68 7

At 31 March 2012 660 202

Depreciation At 1 April 2011 475 176 Charge for the year 55 13

At 31 March 2012 530 189

Net book value

At 31 March 2012 130 13

At 31 March 2011 117 19

13 13 Debtors Consolidated Chapter 2012 2011 2012 2011 £000 £000 £000 £000

Winchester Cathedral Enterprises Limited - - 513 235 Other debtors 136 280 127 266 Prepayments 42 45 30 33

178 325 670 534

14 14 Current liabilities Consolidated Chapter 2012 2011 2012 2011 £000 £000 £000 £000

Bank overdraft - 102 - 102 Trade creditors 101 152 79 109 Social security and other taxes 46 92 38 86 Other creditors 348 171 347 79 Accruals 83 70 78 70

578 587 542 446

Annual Report Statutory Supplement and Audited Accounts - Page 37

15 15 Endowment funds

Consolidated and Chapter At 1 April Net Investment At 31 March 2011 Incoming/ gains/ 2012 (outgoing) (losses) in resources the year £000 £000 £000 £000

Appeal fund: Fabric 1,791 - (14) 1,777 Music 71 - - 71 Staff 25 - - 25

1,887 - (14) 1,873 Music 2,390 - (17) 2,373 Permanent endowment 754 - (5) 749 John and Kathleen Kyle Memorial Fund for Lay Clerks 80 - - 80 Roger Bruce Ellery 39 - - 39

5,150 - (36) 5,114

16 16 Restricted funds

Consolidated At 1 April Net Investment At 31 March 2011 Incoming/ gains/ 2012 (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,109 - (5) 1,104 Fabric 33 (2) - 31 Fabric and worship 46 - - 46 Deanery furnishings 18 - - 18 Cathedral charitable 28 3 - 31 Patrick Mace 10 - - 10 Library 27 - - 27 Choristers’ bursary 13 - - 13 Thomas-Davies 13 - - 13 Venerable Altar/ Swags 16 (16) - - Woodhouse Trust 5 - - 5 Girls’ choir 4 2 - 6 Music 18 12 - 30 High Altar Carving Fund - 13 - 13 Tapestry Fund - 5 - 5 Others under £5,000 19 (2) - 17

1,359 15 (5) 1,369 Close property revaluation reserve 23,587 (12) - 23,575

24,946 3 (5) 24,944

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16 16 Restricted funds (cont'd)

Chapter At 1 April Net Investment At 31 March 2011 Incoming/ gains/ 2012 (outgoing) (losses) in resources the year £000 £000 £000 £000

AEV Day deceased 1,109 - (5) 1,104 Fabric 33 (2) - 31 Fabric and worship 46 - - 46 Deanery furnishings 18 - - 18 Cathedral charitable 28 3 - 31 Patrick Mace 10 - - 10 Library 27 - - 27 Choristers’ bursary 13 - - 13 Thomas-Davies 13 - - 13 Venerable Altar/ Swags 16 (16) - - Woodhouse Trust 5 - - 5 Girls’ choir 4 2 - 6 Music 18 12 - 30 High Altar Carving Fund - 13 - 13 Tapestry Fund - 5 - 5 Others under £5,000 19 (1) - 18

1,359 16 (5) 1,370 Close property revaluation reserve 23,802 (12) - 23,790

25,161 4 (5) 25,160

17 17 Designated funds Consolidated and Chapter At 1 April Net Investment At 31 March 2011 Incoming/ gains/ 2012 (outgoing) (losses) in £000 £000 £000 £000

Kings & Scribes Project Fund - 50 - 50

- 50 - 50

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18 18 Unrestricted funds Consolidated At 1 April Net Investment At 31 March 2011 Incoming/ gains/ 2012 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 1,620 25 (5) 1,640 Property revaluation reserve 634 - - 634

2,254 25 (5) 2,274

Chapter At 1 April Net Investment At 31 March 2011 Incoming/ gains/ 2012 (outgoing) (losses) in resources the year £000 £000 £000 £000 General fund 811 25 (5) 831 Property revaluation reserve 159 - - 159

970 25 (5) 990

19 19 Reconciliation of net incoming resources to net cash outflow from operating activities 2012 2011 £000 £000 Net incoming resources before revaluations and disposal of investments 78 91 Less income from property and investments (918) (850) Add property management costs and investment manager costs. 63 39 Depreciation charges 67 61 Decrease/(increase) in stocks (21) 4 (Increase)/decrease in debtors 147 (75) Increase in creditors 92 50

Net cash outflow from operating activities (492) (680)

20 20 Reconciliation of net cash flow to movement in net funds 2012 2011 £000 £000 Increase/(decrease) in cash 301 (105) Increase /(decrease) in liquid resources - -

Increase/(decrease) in net funds 301 (105) Net funds at 1 April 2011 (15) 90

Net funds at 31 March 2012 286 (15)

21 21 Analysis of changes in net funds At 1 April Cash flow At 31 March 2011 2012 £000 £000 £000 Cash at bank and in hand/(Overdraft) (27) 301 274 Cash balances included in investments 12 - 12

(15) 301 286

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2 2 22 Capital commitments

There were no capital commitments at 31 March 2012 or 31 March 2011.

2 3 23 Contingent assets/liabilities

There were no contingent assets or liabilities at 31 March 2012 or 31 March 2011.

24 24 Post Balance-sheet events

At 31st March 2012, Chapter were aware of an unrestricted legacy, the value of which could not be measured with sufficient reliability. In the event, £49,000 was received after the year end.

25 25 Pension schemes

Chapter participates in the Church of England Defined Contributions Scheme, part of the Church Workers’ Pension Scheme. New employees may enrol in this scheme.

In addition, Chapter operates a Stakeholder Pension scheme with Friends Provident and also participates in the Church of England Defined Benefits Scheme (DBS), also part of the Church Workers’ Pension Scheme, both of which schemes are now closed to new members. At 31 March 2012 the Chapter had 4 active members and 13 deferred pensioner members in the DBS. The Chapter is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. A valuation of the Fund was carried out as at 31 December 2010 and the Chapter's contribution rate was revised to 25.8% with effect from 1 April 2012.

26 26 Connected entities Certain members of the Chapter are trustees of both The Winchester Cathedral Trust and The Carl Klein Trust, and are members of the Friends of Winchester Cathedral. However, the Chapter does not have day to day control over any of these charities.

The Friends of Winchester Cathedral This association exists to assist the Chapter in maintaining, the fabric and monuments and the fittings and furnishings of the Cathedral and its associated ground-works within the precincts, excluding property used for residential or administrative purposes.

The Winchester Cathedral Trust The Charity’s objects are to raise funds and receive donations to apply to any charitable purpose connected with Winchester Cathedral. This includes the general upkeep of the Cathedral and the improvement and repair of all other buildings in the Cathedral Close, and the receipt and distribution of funds raised to meet the costs of choristers.

The Carl Klein Trust The Charity’s objects are to provide financial assistance to lay clerks and prospective lay clerks of Winchester Cathedral who are in need or are suffering hardship.

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26 26 Connected entities (cont'd)

The most recently published summarised results of these entities are as follows:- The The The Friends of Winchester Carl Klein Winchester Cathedral Trust Cathedral Trust 31-Mar-12 31-Mar-12 31-Mar-12 £000 £000 £000 Gross Income 307 639 1

Net incoming/(outgoing) resources for the year (89) 440 (3)

Net Movement in Funds (66) 440 (2)

Amounts paid or payable to the Cathedral 337 26 2

Gross Assets 808 1,021 416

Net Assets 399 1,020 416

The above accounts of The Winchester Cathedral Trust, The Carl Klein Trust and the Friends of Winchester Cathedral have been subject to an audit or independent examination under the Charities Act 1993. Only income receivable from the above connected entities has been included in the financial statements of the Chapter.

The Pilgrims' School (Limited by guarantee) In addition to the above connected entities, the Chapter has the right to appoint Governors of The Pilgrims' School (Limited by Guarantee). However, the School's results have not been consolidated and no financial results for the year have been reproduced as the Chapter does not regard running the School as part of the ministry of the Cathedral and any financial surplus is not passed on to the Cathedral.

27 Related party transactions

During the year the Chapter received £59k (2011: £nil) from The Winchester Cathedral Trust. During the year the Chapter received £104k (2011: £691k) from The Friends of Winchester Cathedral in grants. During the year the Chapter received £129k (2011: £127k) from The Pilgrims' School (Limited by Guarantee) in respect of rent. During the year the Chapter paid £205k (2011: £203k) in respect of Choristers' school fees to The Pilgrims' School (Limited by Guarantee). During the year the Chapter paid £4k (2011: £3k) to Sophie Hacker, the wife of a Chapter member Canon Roland Riem, in respect expenditure on arts and exhibitions.

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